Tuesday, June 21, 2011

Choosing the Right Forex Broker

Sometimes it is hard to open a decision on the forex broker on our trading account, it is easy to make too many of them. Most of them have different qualities, abilities, weaknesses and benefits for this reason, I can use a checklist to help you in your forex broker adventure has created.
1st Is it regulated?

The first question one must ask: Is the broker I would like to use regulated? There should be no doubt about the first point. All regulated brokers are required to submit financial reports to regulators, and if they do not, the authorities have the right to terminate their membership or a fine. This will force Forex brokers to keep transparent financial reports.Regulates brokers by their local regulatory authorities, should be, for example, for brokers in the U.S., they must be regulated by the NFA (National Futures Association) and CFTC (Commodity Futures Trading Commission), based in Switzerland must be covered by broker FDF (Swiss Federal Department of Finance) and so on.

Even if a forex broker is regulated, it allows investors to any conflict, the rise in investor protection.
2nd Terms and Conditions

This point relates to functions trading platform and the terms and conditions with the selected broker. Has been key factors:

Spread - Obviously, the smaller the spread on currency pairs, the better conditions for investors and traders.

Broken Trading - Some brokers may at a fraction of investors and traders based on trade, instead of trading full lots "100,000 units" or "300,000 units" so you can "163 345 units" or "325 911 units of" trade . This is very useful to the risk of trading certain percentage of their balance on each trade.

Execution Platform - Trading Execution refers to how quickly and consistently carry out business. Some brokers provide a fast and transparent execution in normal market conditions.

Security of funds - We must ensure that our trading partners means in a segregated account or at least is assured with.